PENSION PLANS (Tables)

12 Months Ended

Dec. 28, 2018

Weighted Average Percentage Of Actual And Target Asset Allocation Table

The Domestic Plans’ and Foreign Plans’ asset mixes as of December 28, 2018 and December 29, 2017 and the asset allocation guidelines for such plans are summarized as follows.



	Domestic Plans
	December 28, 2018		Allocation Guidelines
	December 28, 2018		Min		Target		Max
Global equities	40.1	%	37	%	46	%	66	%
Debt securities:
Domestic treasuries	15.6		—		12		34
Corporate bonds	16.3		—		17		34
Other	14.5		9		14		19
Total debt securities	46.4		9		43		87
Property/real estate	12.6		—		10		19
Other	0.9		—		1		5
	100.0	%			100	%



	Domestic Plans
	December 29, 2017		Allocation Guidelines
	December 29, 2017		Min		Target		Max
Domestic equities	51.9	%	37	%	52	%	67	%
International equities	11.8		5		10		15
Total equity securities	63.7				62
Debt securities	33.4		31		38		45
Other	2.9		—		—		10
	100.0	%			100	%



	Foreign Plans
	December 28, 2018		December 29, 2017		Allocation
					Guidelines
					Target
Equity securities	60	%	62	%	60	%
Debt securities	30		29		30
Other investments	10		9		10
	100	%	100	%	100	%

Defined Benefit Plan Amounts Recognized in Other Comprehensive Income (Loss)

The following table sets forth the changes and the end of year components of "Accumulated other comprehensive loss" for the defined benefit plans:



(In millions)	December 28, 2018			December 29, 2017
Changes to Balance:
Beginning balance	$	112.2		$	119.2
Recognized prior service cost	4.0			4.0
Recognized net actuarial gain	(7.5		)	(9.6		)
Prior service cost arising in current year	0.4			4.2
Net actuarial loss (gain) arising in current year	21.8			(5.6		)
Other	(4.2		)	—
Ending balance	$	126.7		$	112.2

Accumulated Other Comprehensive Income (Loss) for Benefit Plans



Components of Balance:
Prior service credit	$	(12.8	)	$	(17.3	)
Net actuarial loss	139.5			129.5
	$	126.7		$	112.2

Schedule of Amounts in Accumulated Other Comprehensive Income (Loss) to be Recognized over Next Fiscal Year

Amounts in "Accumulated other comprehensive loss" expected to be recognized as components of net period pension cost in 2019 are as follows:



(In millions)
Amortization of prior service credit	$	(3.8	)
Amortization of actuarial loss	8.3
Total amortization expected	$	4.5

Reconciliation of Net Funded Status of Pension Plans

The following represents a reconciliation of the funded status of the Company's pension plans for fiscal years 2018 and 2017:



	Pension Benefits
	Domestic Plans						Foreign Plans						Total
(In millions)	2018			2017			2018			2017			2018			2017
Change in projected benefit obligation:
Beginning balance	$	275.8		$	258.8		$	257.6		$	223.0		$	533.4		$	481.8
Service cost	3.5			3.3			5.9			5.9			9.4			9.2
Interest cost	10.3			11.1			6.8			6.9			17.1			18.0
Actuarial (gain) loss	(19.9		)	22.4			(4.0		)	8.6			(23.9		)	31.0
Benefits paid from plan assets	(7.4		)	(7.5		)	(8.1		)	(6.7		)	(15.5		)	(14.2		)
Benefits paid from Company assets	(0.8		)	(1.0		)	—			—			(0.8		)	(1.0		)
Plan amendment	—			—			0.5			—			0.5			—
Settlement	—			—			(0.5		)	—			(0.5		)	—
Plan participants contributions	—			—			0.1			0.1			0.1			0.1
Foreign currency exchange rate changes	—			—			(15.7		)	21.2			(15.7		)	21.2
Impact due to annuity purchase	—			(11.3		)	—			(1.4		)	—			(12.7		)
Ending balance	$	261.5		$	275.8		$	242.6		$	257.6		$	504.1		$	533.4
Change in plan assets at fair value:
Beginning balance	$	280.8		$	238.3		$	209.1		$	174.4		$	489.9		$	412.7
Actual return on plan assets	(13.0		)	41.0			(6.9		)	18.9			(19.9		)	59.9
Company contributions to plan assets	—			20.3			7.4			7.1			7.4			27.4
Benefits paid from plan assets	(7.4		)	(7.5		)	(8.1		)	(6.7		)	(15.5		)	(14.2		)
Settlement	—			—			(0.5		)	—			(0.5		)	—
Plan participants contributions	—			—			0.1			0.1			0.1			0.1
Purchase of annuity	—			(11.3		)	—			(1.4		)	—			(12.7		)
Foreign currency exchange rate changes	—			—			(12.6		)	16.7			(12.6		)	16.7
Ending balance	$	260.4		$	280.8		$	188.5		$	209.1		$	448.9		$	489.9
Reconciliation of funded status:
Projected benefit obligation	$	(261.5	)	$	(275.8	)	$	(242.6	)	$	(257.6	)	$	(504.1	)	$	(533.4	)
Plan assets at fair value	260.4			280.8			188.5			209.1			448.9			489.9
Funded status	$	(1.1	)	$	5.0		$	(54.1	)	$	(48.5	)	$	(55.2	)	$	(43.5	)
Included in the 2018 and 2017 funded status is accrued benefit cost of approximately $16.5 million and $17.7 million, respectively, related to two non-qualified plans, which cannot be funded pursuant to tax regulations.
Noncurrent asset	$	15.4		$	22.6		$	0.2		$	0.2		$	15.6		$	22.8
Current liability	(1.2		)	(0.8		)	—			—			(1.2		)	(0.8		)
Noncurrent liability	(15.3		)	(16.8		)	(54.3		)	(48.7		)	(69.6		)	(65.5		)
Funded status	$	(1.1	)	$	5.0		$	(54.1	)	$	(48.5	)	$	(55.2	)	$	(43.5	)
Weighted-average assumptions used for measurement of the projected benefit obligation:
Discount rate	4.28		%	3.78		%	2.84		%	2.70		%	3.59		%	3.26		%
Salary growth rate	3.75		%	3.76		%	3.26		%	3.04		%	3.51		%	3.36		%

Components of Net Periodic Benefit Costs

The following represents the funded components of net periodic pension (benefit) cost as reflected in the Company's Consolidated Statements of Income and the weighted-average assumptions used to measure net periodic pension cost for the years ended December 28, 2018, December 29, 2017 and December 30, 2016:



	Pension Benefits
	Domestic Plans									Foreign Plans									Total
(In millions)	2018			2017			2016			2018			2017			2016			2018			2017			2016
Recorded in operating expenses:
Service cost	$	3.5		$	4.7		$	4.7		$	5.9		$	5.9		$	5.9		$	9.4		$	10.6		$	10.6

Recorded in other, net:
Interest cost	10.3			11.1			11.5			6.8			6.9			7.8			17.1			18.0			19.3
Expected return on plan assets	(16.0		)	(14.9		)	(14.2		)	(9.8		)	(8.8		)	(9.4		)	(25.8		)	(23.7		)	(23.6		)
Net amortization	0.6			2.5			2.4			2.9			3.0			2.5			3.5			5.5			4.9
Settlement charge	—			—			—			0.1			—			9.6			0.1			—			9.6
Total recorded in other, net	$	(5.1	)	(1.3		)	(0.3		)	—			1.1			10.5			(5.1		)	(0.2		)	10.2

Total net periodic pension (benefit) cost	$	(1.6	)	$	3.4		$	4.4		$	5.9		$	7.0		$	16.4		$	4.3		$	10.4		$	20.8

Weighted-Average Assumptions Used to Measure Net Periodic Benefit Cost



Weighted-average assumption used to measure net periodic pension (benefit) cost:
Discount rate	3.78	%	4.36	%	4.65	%	2.70	%	2.99	%	3.35	%	3.26	%	3.73	%	3.98	%
Expected return on plan assets	6.25	%	6.25	%	6.50	%	4.81	%	4.79	%	4.54	%	5.63	%	5.59	%	5.50	%
Salary growth rate	3.76	%	4.63	%	4.60	%	3.04	%	3.01	%	3.08	%	3.36	%	3.73	%	3.75	%

Assets Measured at Fair Value on a Recurring Basis

Disclosures concerning assets measured at fair value on a recurring basis at December 28, 2018 and December 29, 2017, which have been categorized under the fair value hierarchy for the Domestic and Foreign Plans by the Company are as follows:



	As of December 28, 2018
	Domestic Plans								Foreign Plans								Total
(In millions)	Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3		Total
Asset Categories:
Equity securities:
Domestic	$	—	$	—	$	—	$	—	$	—	$	44.1	$	—	$	44.1	$	—	$	44.1	$	—	$	44.1
International ^(a)	—		—		—		—		—		68.2		—		68.2		—		68.2		—		68.2
Global	—		104.3		—		104.3		—		—		—		—		—		104.3		—		104.3
Debt securities:
Domestic treasuries	—		40.5		—		40.5		—		44.2		—		44.2		—		84.7		—		84.7
Corporate bonds	—		42.4		—		42.4		—		12.3		—		12.3		—		54.7		—		54.7
Other	—		38.0		—		38.0		—		—		—		—		—		38.0		—		38.0
Property/real estate	—		—		32.7		32.7		—		0.3		—		0.3		—		0.3		32.7		33.0
Insurance products	—		—		—		—		—		18.6		—		18.6		—		18.6		—		18.6
Other	2.5		—		—		2.5		0.8		—		—		0.8		3.3		—		—		3.3
Total at December 28, 2018	$	2.5	$	225.2	$	32.7	$	260.4	$	0.8	$	187.7	$	—	$	188.5	$	3.3	$	412.9	$	32.7	$	448.9


(a)	Investment in funds outside the country where the pension plan originates is considered International.



	As of December 29, 2017
	Domestic Plans								Foreign Plans								Total
(In millions)	Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3		Total
Asset Categories:
Equity securities:
Domestic	145.6		—		—		145.6		—		51.1		—		51.1		145.6		51.1		—		196.7
International ^(a)	33.2		—		—		33.2		—		78.2		—		78.2		33.2		78.2		—		111.4
Debt securities:
Domestic treasuries	0.4		4.0		—		4.4		—		48.0		—		48.0		0.4		52.0		—		52.4
Corporate bonds	—		89.5		—		89.5		—		11.8		—		11.8		—		101.3		—		101.3
Insurance products	—		—		—		—		—		19.1		—		19.1		—		19.1		—		19.1
Other	8.1		—		—		8.1		0.3		0.6		—		0.9		8.4		0.6		—		9.0
Total at December 29, 2017	$	187.3	$	93.5	$	—	$	280.8	$	0.3	$	208.8	$	—	$	209.1	$	187.6	$	302.3	$	—	$	489.9


(a)	Investment in funds outside the country where the pension plan originates is considered International.

Change in Level 3 Assets Measured at Fair Value on a Recurring Basis

Changes in Anixter's Level 3 plan assets, which are included in operations, for the year ended December 28, 2018 included:



(In millions)	December 29, 2017 Balance		Purchases, sales and settlements		December 28, 2018 Balance
Asset Categories:
Property/real estate	$	—	$	32.7	$	32.7
Total Level 3 investments	$	—	$	32.7	$	32.7

Estimated Future Benefit Payments

The Company estimated future benefits payments are as follows at the end of 2018:



	Estimated Future Benefit Payments
(In millions)	Domestic		Foreign		Total
2019	$	10.3	$	5.2	$	15.5
2020	11.0		5.5		16.5
2021	11.9		5.6		17.5
2022	12.7		7.7		20.4
2023	13.5		6.7		20.2
2024-2028	78.4		53.5		131.9
Total	$	137.8	$	84.2	$	222.0